Masterskill's rebound has legs
Published: 2011/01/07
Masterskill Education Group Bhd rebounded yesterday. Its daily price trend rallied to close at RM2.50, posting a day-on-day gain of 22 sen, or 9.65 per cent.
Chartwise, Masterskill's daily price trend rebounded from its low of RM2.03 on December 20, 2010 all the way up to its intra-day high of RM2.59 yesterday, posting a gain of 56 sen, or 27.58 per cent.
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Its daily fast MACD (Moving Average Convergence Divergence indicator) continued to stay above its daily slow MACD yesterday. Both of its daily fast and slow MACDs continued to stay above their respective neutral reference lines.
Masterskill's 60-minute price trend is likely to stage a follow-through technical rebound with intermittent profit-taking liquidations.
<1>The subject expressed above is based purely on technical analysis and opinions of the writer. It is not a solicitation to buy or sell.
http://www.btimes.com.my/Current_News/BTIMES/articles/masterskill/Article/
Doing better next term
Dated: 23.11.2010
Source: CIMB
OUTPERFORM Maintained
RM2.14 Target: RM4.73
Mkt.Cap: RM877m/US$281m
Education
Source: CIMB
OUTPERFORM Maintained
RM2.14 Target: RM4.73
Mkt.Cap: RM877m/US$281m
Education
• Above expectations; maintain OUTPERFORM. Although Masterskill’s annualised 9M10 core net profit was just 1% above our forecast and 94% of consensus, we consider the results to be above expectations as 4Q should be stronger due to a pickup in year-end student intake and continued operational efficiency. We raise our FY10-12 EPS forecasts by 2-4% for lower tax rates. This increases our target price from RM4.62 to RM4.73, still pegged to our target CY12 market P/E of 13.8x. The share price collapse triggered by overblown concerns over the sustainability of PTPTN has taken CY11-12 P/Es to only 6-7x. These results attest to the group’s strong fundamentals. We maintain our OUTPERFORM call given the potential catalysts of (i) better-than-expected student growth (ii) an improvement in investor sentiment on the stock, and (iii) investors’ preference for defensive growth plays.
• Revenue growth despite campus delays. 9M10 revenue growth would have been stronger if not for delays in the commencement of the Kuching and Johor campuses. The 18% rise in revenue came from an increase in student numbers from 14k as at Sep 09 to 17k in Sep 10. 9M10 EBITDA margin slipped 3.5% pts to 43.3%, which is commendable by industry standards. Core net profit rose 9.5% yoy. No dividends were declared, which was no surprise.
• Expecting a stronger 4Q. The impact of the campus delays should subside, leading to a stronger 4Q, which will be driven by a pickup in year-end student intake and continued operating efficiency. We raise our FY10-12 EPS forecasts by 2-4% as we impute lower a tax rate of 21% from 25% before. Our base assumption of 19k students in 2010 and a conservative 10-11% annual growth rate for student numbers in FY11-12 (net student addition of 2.2k p.a.) are unchanged. Our revised net profit forecast for FY10 implies 8% qoq net profit growth in 4Q10. We expect a gross DPS of 12.6 sen for FY10, which translates into a solid dividend yield of 5.9%
• Revenue growth despite campus delays. 9M10 revenue growth would have been stronger if not for delays in the commencement of the Kuching and Johor campuses. The 18% rise in revenue came from an increase in student numbers from 14k as at Sep 09 to 17k in Sep 10. 9M10 EBITDA margin slipped 3.5% pts to 43.3%, which is commendable by industry standards. Core net profit rose 9.5% yoy. No dividends were declared, which was no surprise.
• Expecting a stronger 4Q. The impact of the campus delays should subside, leading to a stronger 4Q, which will be driven by a pickup in year-end student intake and continued operating efficiency. We raise our FY10-12 EPS forecasts by 2-4% as we impute lower a tax rate of 21% from 25% before. Our base assumption of 19k students in 2010 and a conservative 10-11% annual growth rate for student numbers in FY11-12 (net student addition of 2.2k p.a.) are unchanged. Our revised net profit forecast for FY10 implies 8% qoq net profit growth in 4Q10. We expect a gross DPS of 12.6 sen for FY10, which translates into a solid dividend yield of 5.9%
OSK Research: Masterskill results within expectations
Dated: 23.11.2010Source: The Edge
KUALA LUMPUR: OSK Research said Masterskill Education Group’s 9MFY10 results were within its and consensus expectations, making up about 73.8% and 72% of the research house’s and consensus expectation. The research house said on Tuesday, Nov 23 that in 9MFY10, revenue rose 17.9% on-year while net profit was up by only 9.5%, largely due to weaker margins as EBIT margin dipped from 42.8% in 9MFY09 to 38.5% for 9MFY10.
“While the results were within our expectations, we maintain our forecast and Trading Buy recommendation at an unchanged TP of RM3.59 based on 12x PER on FY11 EPS. After its sharp share price retracement, Masterskill is now trading at a rather appealing 7.1x PER on FY11 EPS compared to its peers’ 14x PER on FY11 EPS,” it said.
“While the results were within our expectations, we maintain our forecast and Trading Buy recommendation at an unchanged TP of RM3.59 based on 12x PER on FY11 EPS. After its sharp share price retracement, Masterskill is now trading at a rather appealing 7.1x PER on FY11 EPS compared to its peers’ 14x PER on FY11 EPS,” it said.
Lower earnings for MEGB at RM26m in 3Q
Dated: 22.11.2010Source: The Edge
By: Surin Murugiah
KUALA LUMPUR: Masterskill Education Group Bhd (MEGB) net profit for the third quarter ended Sept 30, 2010 fell 21.9% to RM26.19 million from RM33.52 million a year earlier, due to higher operational overheads in line with its expansion. MEGB said on Monday, Nov 22 revenue was 10.9% higher at RM80.68 million from RM72.74 million a year ago. Earnings per share were nine sen per share while net assets per share was RM1.20.
However, for the nine months ended Sept 30, MEGB’s net profit rose 6.5% to RM75.3 million from RM68.76 million in the previous corresponding period, mainly due to the increase in its student numbers from 16,801 in September last year to 17,613 in September this year.
However, for the nine months ended Sept 30, MEGB’s net profit rose 6.5% to RM75.3 million from RM68.76 million in the previous corresponding period, mainly due to the increase in its student numbers from 16,801 in September last year to 17,613 in September this year.
| Financial Results |
| Reference No CM-101110-43398 |
| Company Name | : | MASTERSKILL EDUCATION GROUP BERHAD |
| Stock Name | : | MEGB |
| Date Announced | : | 22/11/2010 |
| Financial Year End | : | 31/12/2010 |
| Quarter | : | 3 |
| Quarterly report for the financial period ended | : | 30/09/2010 |
| The figures | : | have not been audited |
| Converted attachment : |
| Please attach the full Quarterly Report here: |
MEGB 2010 Q3.pdf| Remark: |
 | | |
| Currency | : | Malaysian Ringgit (MYR) |
SUMMARY OF KEY FINANCIAL INFORMATION |
30/09/2010 |
INDIVIDUAL PERIOD | CUMULATIVE PERIOD | ||||
CURRENT YEAR QUARTER | PRECEDING YEAR CORRESPONDING QUARTER | CURRENT YEAR TO DATE | PRECEDING YEAR CORRESPONDING PERIOD | ||
30/09/2010 | 30/09/2009 | 30/09/2010 | 30/09/2009 | ||
$$'000 | $$'000 | $$'000 | $$'000 | ||
| 1 | Revenue | 80,678 | 72,746 | 234,831 | 199,121 |
| 2 | Profit/(loss) before tax | 34,199 | 41,587 | 91,976 | 84,870 |
| 3 | Profit/(loss) for the period | 26,185 | 33,520 | 75,298 | 68,765 |
| 4 | Profit/(loss) attributable to ordinary equity holders of the parent | 26,185 | 33,520 | 75,298 | 68,765 |
| 5 | Basic earnings/(loss) per share (Subunit) | 9.00 | 6,704.00 | 27.00 | 13,753.00 |
| 6 | Proposed/Declared dividend per share (Subunit) | 7.00 | 0.00 | 7.00 | 0.00 |
AS AT END OF CURRENT QUARTER | AS AT PRECEDING FINANCIAL YEAR END | ||||
| 7 | Net assets per share attributable to ordinary equity holders of the parent ($$) | 1.2000 | |||
| Remarks : |
| The net assets per share attributable to the ordinary equity holders of the parent as at preceding financial year ended 31 December 2009 was RM2,926.24. This was computed as consolidated net assets divided by 100,000 ordinary shares of RM1.00 each. |
Masterskill Education Group (MASEG MK; RM2.16) – SELL
Dated: 16.11.2010
Source: CIMB
by botzone » Fri Oct 15, 2010 4:52 pm 
Source: CIMB
FY11P/E: 7.7x, P/BV: 1.8x
• Since we featured Masterskill Education as a technical sell stock on 15th October, prices have fallen sharply to current levels. Yesterday, the stock also violated its previous swing low of RM2.25. The breakdown would likely draw greater selling pressure in days to come, which prompts us to stick with the bear’s camp.
• Looking at the chart, there is a high possibility that prices may dwindle towards RM2.01 and RM1.85 next. However, be quick to cut loss if prices bounce back above the RM2.43 level.
• The current easing technical landscape reinforces our bearish stance. MACD is in the red while its RSI has also slipped into the oversold territory.
Masterskill Education Group Berhad is an investment holding company. The company's subsidiaries provide higher education and training in nursing and allied health sciences.
• Since we featured Masterskill Education as a technical sell stock on 15th October, prices have fallen sharply to current levels. Yesterday, the stock also violated its previous swing low of RM2.25. The breakdown would likely draw greater selling pressure in days to come, which prompts us to stick with the bear’s camp.
• Looking at the chart, there is a high possibility that prices may dwindle towards RM2.01 and RM1.85 next. However, be quick to cut loss if prices bounce back above the RM2.43 level.
• The current easing technical landscape reinforces our bearish stance. MACD is in the red while its RSI has also slipped into the oversold territory.
Masterskill Education Group Berhad is an investment holding company. The company's subsidiaries provide higher education and training in nursing and allied health sciences.
Dated: 26.10.2010
Source: CIMB
Source: CIMB
FY11P/E: 11.3x, P/BV: 2.6x
• Masterskill has retraced a tad lower after we called for a technical sell on 15th October. Our bearish view on the stock remains intact as prices still trapped in a bearish flag pattern. If the support trend line is violated, there is a high possibility that prices may retest its previous low of RM2.80. Note that prices have remained below its 30-day SMA since mid August, another negative sign.
• Technical landscape remains subdued. MACD is hovering in the negative territory while RSI is also below the 50pts mark. Near term gains are likely capped at RM3.32-RM3.49.
• Unless prices inch past RM3.60, we will stick with the bears’ camp for now. A slip below its 23.6% FR level at RM3.15 would confirm the bearish trend. Next downside targets are RM3.00 and RM2.80.
Masterskill Education Group Berhad is an investment holding company. The company's subsidiaries provide higher education and training in nursing and allied health sciences.
• Masterskill has retraced a tad lower after we called for a technical sell on 15th October. Our bearish view on the stock remains intact as prices still trapped in a bearish flag pattern. If the support trend line is violated, there is a high possibility that prices may retest its previous low of RM2.80. Note that prices have remained below its 30-day SMA since mid August, another negative sign.
• Technical landscape remains subdued. MACD is hovering in the negative territory while RSI is also below the 50pts mark. Near term gains are likely capped at RM3.32-RM3.49.
• Unless prices inch past RM3.60, we will stick with the bears’ camp for now. A slip below its 23.6% FR level at RM3.15 would confirm the bearish trend. Next downside targets are RM3.00 and RM2.80.
Masterskill Education Group Berhad is an investment holding company. The company's subsidiaries provide higher education and training in nursing and allied health sciences.
MEGB (5166)
by botzone » Fri Oct 15, 2010 4:52 pm 
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